Nuveen Churchill Direct Lending Q2: 27% Discount And 9.5% Expected ROE

Arbitrage Trader Investing Group Leader Follow Summary Nuveen Churchill Direct Lending maintains a conservative credit profile with a non-accrual ratio of 1.5%, about half the sector median. First lien loans comprise nearly 90% of NCDL's portfolio, emphasizing senior secured lending and prudent risk management. Net debt/equity improved to 1.23x, and 94.2% of leverage is floating-rate, boosting earnings in rising rate environments but heightening margin risk if rates fall. NCDL's 1-year NAV total return of 5.43% outpaces the peer group's 2.8%, reflecting strong portfolio performance and disciplined asset allocation. I do much more than just articles at Trade With Beta: Members get access to model portfolios, regular updates, a chat room, and more. Learn More » JHVEPhoto/iStock Editorial via Getty Images Nuveen Churchill Direct Lending ( NCDL ) recently announced its second-quarter earnings, and we want to examine its financial metrics, total returns, and try to calculate the expected ROE of the common stock (currently close to 9.5%). The company has close This article was written by Arbitrage Trader 15.89K Followers Follow Arbitrage Trader, aka Denislav Iliev has been day trading for 15+ years and leads a team of 40 analysts. They identify mispriced investments in fixed-income and closed-end funds based on simple-to-understand financial logic. Denislav leads the investing group Trade With Beta, features of the service include: frequent picks for mispriced preferred stocks and baby bonds, weekly reviews of 1200+ equities, IPO previews, hedging strategies, an actively managed portfolio, and chat for discussion. Learn more. Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, but may initiate a beneficial Long position through a purchase of the stock, or the purchase of call options or similar derivatives in NCDL over the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.